Enel SpA is considering selling its Peru operations as part of measures to reduce debt and finance new investments, sources told Bloomberg on condition of anonymity.

Italy’s biggest utility is working with advisers on a potential sale that could be valued at about $5 billion, and the deal has already attracted preliminary interest from strategic investors and investment funds, the sources said.

Enel shares rose 2.7% on the Milan stock exchange on Friday, giving the company a market capitalization of 52.2 billion euros ($54.2 billion).

Enel, which recently cut its profit target for 2022 amid the global energy crisis, is considering further asset sales outside Italy in an effort to reduce debt and fund new investments, Bloomberg reported earlier this month.

The plan could include selling stakes in countries such as Romania, Greece, Australia and Colombia, the sources added.

For the first nine months of 2022, earnings before taxes, interest, depreciation and amortization (EBITDA) of Enel’s subsidiary in Peru were 465 million euros, less than 4% of the group’s total of 12.4 billion euros.

On November 22, Enel CEO Francesco Starace will announce the intention to sell the business in Peru at the presentation of the company’s business plan for 2023-2025, according to sources. They add that discussions are ongoing and there is no certainty that they will lead to a transaction.

A representative of Enel did not want to comment on the information.

The Italian group has already announced the sale of assets with an estimated impact on the group’s debts of almost four billion euros. The deals announced so far include the sale of an entire stake in the Russian division, as well as the sale of assets in Brazil and Chile. (Agerpress)

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